America can take new trade steps against 60 countries including India. The Office of the US Trade Representative (USTR) has indicated that the results of the ongoing investigation under Section 301 of the US Trade Act of 1974 will be released in the coming weeks. The investigation is reviewing the trade policies of more than 70 countries, including South Korea, China, Japan and India.
What did the US Trade Representative tell?
US Trade Representative (USTR) Jamieson Greer said that if the investigation confirms cases involving unfair trade practices, excessive production capacity or forced labor, the US could propose imposing additional tariffs or other trade restrictions.
How are possibilities being explored under Section 301?
According to a statement issued by the Office of the US Trade Representative, under Section 301, it has been found that the policies and practices of 60 countries impose unnecessary pressure on American trade and create obstacles to American business. USTR is the US federal agency that is responsible for formulating the country’s foreign trade policy and conducting trade investigations.
The statement said that 54 countries, including India, have failed to impose effective restrictions on the export of products that are likely to involve the use of forced labor in their manufacturing. Apart from India, countries like Australia, Bahrain, Bangladesh, China, Japan, Saudi Arabia, Singapore, Britain and United Arab Emirates are also included in this list.
What is section 301?
Section 301 is a provision of the US Trade Act of 1974 that allows the Office of the US Trade Representative to investigate a country’s trade policies and retaliate if they are found to be unfair or against US interests. Under this, additional import duties (tariffs), trade restrictions or other punitive measures can be taken.
Greer said the Trump administration aims to strengthen the US manufacturing sector and bring production activities back to the US. He claims that due to long-standing unfair trade practices and increasing trade deficit, America is forced to adopt a strict tariff policy.
It is noteworthy that after the US Supreme Court canceled the reciprocal tariffs imposed on specific countries, the Trump administration is now preparing to impose new tariffs by conducting a country-wise investigation under Section 301. In such a situation, after the investigation report comes, the exports of many countries including India may be affected.